Finance, Loans & Insurance
What Is HVAC Insurance and Who Needs It?
HVAC stands for Heating and A/C contractors. Heating and air conditioning contractors install and service air heating equipment. They also install, service and maintain air conditioning hardware for homes, apartments and businesses.
Because these contractors work in places owned by someone else and install expensive equipment, they are, of course, exposed to considerable liability risks. They are exposed to danger from damage done to the property of their customers and from mistakes made during the installation of the new equipment. Maintaining existing hardware also has its own risks.
In addition, there is always the possibility that one of the heating contractor’s employees gets injured on the job.Consequently, heating and air conditioning contractors ought to have generous coverage for their HVAC Contractor Insurance to protect not only themselves but also their customers and employees in case of a mishap.
It can be confusing to decide what specific kind of insurance an HVAC contractor needs, that’s where insurance professionals come in. Bolt Insurance Agency is a good example of a company that assists customers in all 50 states to select the best types insurance and coverages.
Heating and air conditioning contractors must have business insurance to get licensed. The most basic insurance for contractors is liability insurance. However, additional types of insurance are just as important. Heating and air conditioning companies should carry one or more of the following insurance policies:
- HVAC Contractor Insurance
- HVAC contractor Worker’s Compensation
- HVAC Contractor commercial auto insurance
- HVAC Contractor dishonesty insurance
- Inland Marine Insurance
- Property insurance
- A business owner’s policy
- Insurance bond to get the business license
- Umbrella policy.
An umbrella policy covers you and your business up to its policy limit when the limits of the special insurance policies above are exhausted. This comes in handy when one of your vehicles is involved in an accident and the liability insurance on it is limited to, say, $ 50,000. If the claimed damages exceed this limit, the umbrella insurance will cover the difference up to the maximum limit of the umbrella insurance. Umbrella insurance frequently covers at least $ 1,000,000.
Businesses with at least one employee are required in most states to carry Worker’s Compensation Insurance for the protection of their workers. It will cover the medical expenses of employees injured on the job.
Commercial Auto Insurance protects an HVAC contractor business against liability claims from third parties. This type of HVAC Contractors Insurance also provides coverage for company vehicles for instances of vandalism and theft.
The need for Employee Dishonesty Insurance is not so apparent. This insurance is consequently often overlooked. However, since HVAC contractors work in private homes and office and business buildings, there is always a possibility that an employee may engage in theft or vandalism during his work. Employee dishonesty Insurance covers this risk.
Inland Marine Insurance is a very special type of HVAC Contractor Insurance. Company property is at risk during transit from the home base to the customer. This daily routine exposes company assets to the risk of loss, damage or vandalism.